S&P 500: Stocks fall for fifth day as Powell’s Jackson Hole speech looms

Stocks Slide for Fifth Session as Powell’s Jackson Hole Speech Looms

U.S. equities fell again Thursday, with the S&P 500 marking its fifth straight decline and the Dow Jones losing 200 points. The Nasdaq also pulled back, pressured by weakness in tech and broader profit-taking ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole remarks.

How Did the S&P 500 Perform?

The S&P 500 E-mini futures settled at 6,389, holding just above support at 6,374.25. Futures have now given back nearly 1% this week, reflecting a cautious stance ahead of Powell. Energy and healthcare posted modest gains, while consumer staples and discretionary dragged.

From a technical perspective, resistance remains at 6,508.75, with support at 6,374.25. The 50-day moving average sits at 6,299.50, and the 200-day at 6,045.25, giving traders clear downside markers if weakness accelerates.

Why is the Nasdaq Struggling?

Nasdaq 100 futures fell 126 points to 23,197.25, just above the 50-day moving average at 23,035.75. Tech names remained under pressure, with Nvidia, Meta, and ASML weighing on sentiment, while AppLovin and Arm offered pockets of strength.

The index faces resistance at 24,068.50, with support at 23,035.75 and secondary support at 22,775.25. A break below the 23,000 zone would likely trigger heavier selling as traders reduce risk ahead of Powell’s comments.

What Weighed on the Dow?

Dow futures closed at 44,849, down 146 points, led lower by Walmart’s nearly 5% slide after an earnings miss despite stronger sales. Caterpillar and Home Depot also declined, while gains in UnitedHealth and Merck provided some offset.

Technically, resistance is at 45,371, with support at 44,700.25 and the 200-day moving average at 43,656.50. These levels remain critical as traders gauge whether defensive buying can stabilize the index.

What’s Next for Traders?

Attention now shifts to Powell’s Jackson Hole address. Futures markets are pricing in a 79% chance of a September rate cut, but Fed minutes revealed lingering concerns over inflation and the labor market. Two governors even dissented, a rare move that underscores divisions inside the Fed.

Valuations remain elevated, and August’s thin trading volume magnifies price swings. If Powell fails to deliver a clear signal on policy easing, markets may see further downside. Traders should watch whether the S&P 500 can defend 6,374.25, if the Nasdaq holds 23,035.75, and whether the Dow remains above 44,700.25.

More Information in our Economic Calendar.